Knife River Corporation Reports Second Quarter Financial Results
Knife River reported record second-quarter financial results for the period ended June 30, 2024.
Key highlights include:
- Revenue: $806.9 million, up 3% year-over-year.
- Net Income: $77.9 million, up 37% year-over-year.
- Gross Profit: $176.2 million, up 15% year-over-year.
- Adjusted EBITDA: $154.3 million, up 22% year-over-year.
- Net Income Per Share: $1.37, up 37% year-over-year.
The company raised its full-year 2024 guidance, anticipating revenue between $2.8 billion and $3.0 billion and Adjusted EBITDA between $445 million and $485 million.
CEO Brian Gray attributed the strong performance to favorable market conditions, effective pricing strategies, and solid execution. The company continues to optimize costs, has a nearly $1 billion backlog, and sees positive outlooks due to the Infrastructure Investment and Jobs Act funding and state-level construction initiatives.
Knife River ha riportato risultati finanziari record per il secondo trimestre per il periodo terminato il 30 giugno 2024.
I punti salienti includono:
- Entrate: 806,9 milioni di dollari, in aumento del 3% rispetto all'anno precedente.
- Utile Netto: 77,9 milioni di dollari, in aumento del 37% rispetto all'anno precedente.
- Utile Lordo: 176,2 milioni di dollari, in aumento del 15% rispetto all'anno precedente.
- EBITDA Adjusted: 154,3 milioni di dollari, in aumento del 22% rispetto all'anno precedente.
- Utile Netto per Azione: 1,37 dollari, in aumento del 37% rispetto all'anno precedente.
La società ha alzato la sua previsione per l'intero anno 2024, prevedendo entrate tra 2,8 miliardi e 3,0 miliardi di dollari e un EBITDA adjusted tra 445 milioni e 485 milioni di dollari.
Il CEO Brian Gray ha attribuito le forti performance a condizioni di mercato favorevoli, strategie di pricing efficaci e una solida esecuzione. L'azienda continua a ottimizzare i costi, ha un portafoglio ordini di quasi 1 miliardo di dollari e prevede prospettive positive grazie ai finanziamenti della Legge sugli Investimenti nell'Infrastruttura e nel Lavoro e alle iniziative di costruzione a livello statale.
Knife River reportó resultados financieros récord para el segundo trimestre del periodo terminado el 30 de junio de 2024.
Los puntos destacados incluyen:
- Ingresos: 806.9 millones de dólares, un aumento del 3% en comparación con el año anterior.
- Ingreso Neto: 77.9 millones de dólares, un aumento del 37% en comparación con el año anterior.
- Utilidad Bruta: 176.2 millones de dólares, un aumento del 15% en comparación con el año anterior.
- EBITDA Ajustado: 154.3 millones de dólares, un aumento del 22% en comparación con el año anterior.
- Ingreso Neto por Acción: 1.37 dólares, un aumento del 37% en comparación con el año anterior.
La empresa aumentó su guía para todo el año 2024, anticipando ingresos entre 2.8 mil millones y 3.0 mil millones de dólares y un EBITDA ajustado entre 445 millones y 485 millones de dólares.
El CEO Brian Gray atribuyó el fuerte desempeño a condiciones del mercado favorables, estrategias de precios efectivas y una sólida ejecución. La empresa sigue optimizando costos, tiene una cartera de pedidos de casi 1 mil millones de dólares y ve perspectivas positivas gracias a la Ley de Inversión en Infraestructura y Trabajo y las iniciativas de construcción a nivel estatal.
Knife River는 2024년 6월 30일 종료된 기간 동안의 2분기 재무 실적이 기록적이라고 보고했습니다.
주요 하이라이트는 다음과 같습니다:
- 수익: 8억 6백 9십만 달러, 전년 대비 3% 증가.
- 순이익: 7천 7백 9십만 달러, 전년 대비 37% 증가.
- 총 이익: 1억 7천 6백 2십만 달러, 전년 대비 15% 증가.
- 조정 EBITDA: 1억 5천 4백 3십만 달러, 전년 대비 22% 증가.
- 주당 순이익: 1.37 달러, 전년 대비 37% 증가.
회사는 2024년 전체 연간 가이드를 상향 조정하며, 수익을 28억에서 30억 달러, 조정 EBITDA를 4억 4천 5백만에서 4억 8천 5백만 달러로 예상하고 있습니다.
CEO 브라이언 그레이는 강력한 실적의 원인을 우호적인 시장 환경, 효과적인 가격 전략 및 원활한 실행에 있다고 밝혔습니다. 이 회사는 비용 최적화를 계속하고 있으며, 거의 10억 달러의 백로그를 보유하고 있으며, 인프라 투자 및 일자리 법안 자금 지원과 주 차원의 건설 이니셔티브로 인해 긍정적인 전망을 보고 있습니다.
Knife River a déclaré des résultats financiers record pour le deuxième trimestre pour la période se terminant le 30 juin 2024.
Les faits saillants incluent :
- Chiffre d'affaires : 806,9 millions de dollars, en hausse de 3 % par rapport à l'année précédente.
- Bénéfice net : 77,9 millions de dollars, en hausse de 37 % par rapport à l'année précédente.
- Bénéfice brut : 176,2 millions de dollars, en hausse de 15 % par rapport à l'année précédente.
- EBITDA ajusté : 154,3 millions de dollars, en hausse de 22 % par rapport à l'année précédente.
- Bénéfice net par action : 1,37 dollar, en hausse de 37 % par rapport à l'année précédente.
L'entreprise a rehaussé ses prévisions pour l'ensemble de l'année 2024, anticipant un chiffre d'affaires compris entre 2,8 milliards et 3,0 milliards de dollars et un EBITDA ajusté compris entre 445 millions et 485 millions de dollars.
Le PDG Brian Gray a attribué la forte performance à des conditions de marché favorables, des stratégies de tarification efficaces et une exécution solide. L'entreprise continue d'optimiser ses coûts, dispose d'un carnet de commandes de près de 1 milliard de dollars et présente des perspectives positives grâce aux financements de la Loi sur l'investissement dans les infrastructures et les emplois ainsi qu'aux initiatives de construction à l'échelle des États.
Knife River hat für das am 30. Juni 2024 endende Quartal rekordverdächtige Finanzergebnisse veröffentlicht.
Wichtige Highlights sind:
- Umsatz: 806,9 Millionen Dollar, ein Anstieg von 3 % im Vergleich zum Vorjahr.
- Nettoeinkommen: 77,9 Millionen Dollar, ein Anstieg von 37 % im Vergleich zum Vorjahr.
- Bruttogewinn: 176,2 Millionen Dollar, ein Anstieg von 15 % im Vergleich zum Vorjahr.
- Bereinigtes EBITDA: 154,3 Millionen Dollar, ein Anstieg von 22 % im Vergleich zum Vorjahr.
- Nettoeinkommen pro Aktie: 1,37 Dollar, ein Anstieg von 37 % im Vergleich zum Vorjahr.
Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 angehoben und geht von einem Umsatz zwischen 2,8 Milliarden und 3,0 Milliarden Dollar sowie einem bereinigten EBITDA zwischen 445 Millionen und 485 Millionen Dollar aus.
CEO Brian Gray führte die starke Leistung auf günstige Marktbedingungen, effektive Preisstrategien und eine solide Umsetzung zurück. Das Unternehmen optimiert weiterhin die Kosten, hat einen Auftragsbestand von fast 1 Milliarde Dollar und sieht aufgrund der Finanzierungen durch das Gesetz über Infrastrukturinvestitionen und Arbeitsplätze sowie staatlicher Bauinitiativen positive Aussichten.
- Record second-quarter revenue: $806.9 million, a 3% increase.
- Record second-quarter net income: $77.9 million, a 37% increase.
- Adjusted EBITDA increased by 22% to $154.3 million.
- Net income per share increased by 37% to $1.37.
- Raised full-year 2024 revenue guidance to $2.8-$3.0 billion and Adjusted EBITDA to $445-$485 million.
- Energy Services segment saw a 9% revenue decrease due to lower liquid asphalt prices.
- Gross margin for the Pacific segment declined due to higher repair, maintenance costs, and increased depreciation and depletion expenses.
Insights
Knife River 's Q2 2024 results demonstrate strong financial performance and operational execution. The company reported record Q2 revenue of
Notably, the company's focus on margin improvement is paying off, with Adjusted EBITDA margin expanding by 300 basis points to
With a strong backlog of nearly
Knife River's Q2 results reflect a robust construction market and effective execution of their Competitive EDGE plan. The company's strategy of disciplined bidding for higher-margin work and solid project execution is yielding results, evidenced by the
The ongoing impact of the Infrastructure Investment and Jobs Act (IIJA) is a significant tailwind, with
Knife River's focus on materials-based acquisitions aligns with industry trends towards vertical integration and could further strengthen their market position. However, the company should remain vigilant about potential challenges such as labor shortages and material cost fluctuations common in the construction sector.
Knife River's Q2 performance indicates strong market dynamics in the construction materials and contracting services sector. The company's ability to implement pricing initiatives across product lines, particularly in aggregates, suggests robust demand and pricing power in their markets.
The geographic segment breakdown reveals varying market conditions:
- The Northwest segment showed impressive growth with a
31% increase in EBITDA, driven by public agency construction work. - The Central segment faced challenges with revenue declining
7% due to weather issues and strategic volume reduction, yet still improved EBITDA by27% . - The Energy Services segment experienced headwinds with a
9% revenue decrease due to lower liquid asphalt pricing.
Knife River's raised guidance and focus on higher-margin work suggest confidence in market conditions for the remainder of 2024. The company's strategic positioning in states with proactive infrastructure funding bodes well for future growth opportunities.
Achieved record second quarter revenue, net income and adjusted EBITDA
Continued to improve margins toward long-term goals
Raised guidance on revenue and adjusted EBITDA
PERFORMANCE SUMMARY |
||||||||
|
Second Quarter |
|||||||
(In millions, except per share) |
|
2024 |
|
|
2023 |
|
% Change |
|
Revenue |
$ |
806.9 |
|
$ |
785.2 |
|
3 |
% |
Gross profit |
$ |
176.2 |
|
$ |
153.0 |
|
15 |
% |
Net income |
$ |
77.9 |
|
$ |
56.8 |
|
37 |
% |
Net income margin |
|
9.7 |
% |
|
7.2 |
% |
|
|
Trailing-twelve-month net income margin |
|
6.9 |
% |
|
5.1 |
% |
|
|
|
|
|
|
|||||
Adjusted EBITDA |
$ |
154.3 |
|
$ |
126.3 |
|
22 |
% |
Adjusted EBITDA margin |
|
19.1 |
% |
|
16.1 |
% |
|
|
Trailing-twelve-month Adjusted EBITDA margin |
|
15.9 |
% |
|
13.5 |
% |
|
|
|
|
|
|
|||||
Net income per share |
$ |
1.37 |
|
$ |
1.00 |
|
37 |
% |
Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." |
MANAGEMENT COMMENTARY |
“We had a very strong second quarter and start to our construction season, and I’d like to thank our team for their continued effort to execute on our Competitive EDGE plan to help deliver record results,” Knife River President and CEO Brian Gray said. “We are pleased to report record second quarter revenue, net income and Adjusted EBITDA, building upon the previous records set in the second quarter of 2023. We also continued to improve our Adjusted EBITDA margin. On a trailing-twelve-month basis through June 30, Adjusted EBITDA margin grew by 240 basis points, to
“By completing more preconstruction activities in the first quarter, we pulled costs forward and were able to hit the ground running earlier in the second quarter,” Gray said. “Gross profit margin for contracting services increased by 320 basis points from the same quarter last year. Additionally, we have nearly
“At the same time, we continue to optimize the pricing of our materials to reflect their value in the market,” Gray said. “These efforts are creating record profitability and have more than offset volume declines."
“Looking ahead, we see continued support for infrastructure investment,” Gray said. “We still expect to benefit from the Infrastructure Investment and Jobs Act — approximately
“We are excited about the second half of the year and beyond, including line-of-sight growth opportunities,” Gray said. “We are actively working on several potential acquisitions across our segments, focused on materials-based businesses, and we have the strong balance sheet to support these investments. We are in the right markets, with the right team and the right plan to deliver for our shareholders.”
“Given our second quarter results and the visibility we have into the second half of the year, we are raising our guidance for 2024,” Gray said. “We anticipate revenue in the range of
SECOND QUARTER 2024 RESULTS |
For the three months ended June 30, 2024, we reported record consolidated revenue of
In the fourth quarter of 2023, we realigned our reportable segments to better support our operational strategies. The liquid asphalt and related services portion of the Pacific segment’s businesses are now reported under the Energy Services segment. In addition, the North Central and South operating segments have been aggregated into one reportable segment, Central. We also reallocated certain amounts to the operating segments that were previously reported within Corporate Services. All periods have been recast to conform with the revised presentation.
See the section entitled "Non-GAAP Financial Measures" for more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure.
REPORTING SEGMENT PERFORMANCE |
|||||||||||||||||
Pacific |
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
131.8 |
|
$ |
125.1 |
|
5 |
% |
|
$ |
210.2 |
|
$ |
190.7 |
|
10 |
% |
Gross profit |
$ |
22.0 |
|
$ |
22.1 |
|
— |
% |
|
$ |
25.8 |
|
$ |
26.5 |
|
(3 |
)% |
Gross margin |
|
16.7 |
% |
|
17.7 |
% |
|
|
|
12.3 |
% |
|
13.9 |
% |
|
||
EBITDA |
$ |
17.8 |
|
$ |
17.4 |
|
2 |
% |
|
$ |
17.0 |
|
$ |
17.6 |
|
(3 |
)% |
EBITDA margin |
|
13.5 |
% |
|
14.0 |
% |
|
|
|
8.1 |
% |
|
9.2 |
% |
|
Second quarter revenue increased to a record
Northwest |
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
201.2 |
|
$ |
179.0 |
|
12 |
% |
|
$ |
321.5 |
|
$ |
294.9 |
|
9 |
% |
Gross profit |
$ |
51.5 |
|
$ |
41.2 |
|
25 |
% |
|
$ |
71.7 |
|
$ |
57.9 |
|
24 |
% |
Gross margin |
|
25.6 |
% |
|
23.0 |
% |
|
|
|
22.3 |
% |
|
19.6 |
% |
|
||
EBITDA |
$ |
50.7 |
|
$ |
38.9 |
|
31 |
% |
|
$ |
70.9 |
|
$ |
52.9 |
|
34 |
% |
EBITDA margin |
|
25.2 |
% |
|
21.7 |
% |
|
|
|
22.1 |
% |
|
17.9 |
% |
|
Second quarter revenue increased
Mountain |
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
194.0 |
|
$ |
175.8 |
|
10 |
% |
|
$ |
253.8 |
|
$ |
236.4 |
|
7 |
% |
Gross profit |
$ |
43.8 |
|
$ |
32.1 |
|
36 |
% |
|
$ |
40.1 |
|
$ |
29.1 |
|
38 |
% |
Gross margin |
|
22.6 |
% |
|
18.3 |
% |
|
|
|
15.8 |
% |
|
12.3 |
% |
|
||
EBITDA |
$ |
43.1 |
|
$ |
30.3 |
|
42 |
% |
|
$ |
37.0 |
|
$ |
26.5 |
|
39 |
% |
EBITDA margin |
|
22.2 |
% |
|
17.2 |
% |
|
|
|
14.6 |
% |
|
11.2 |
% |
|
Second quarter revenue increased to a record
Central |
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
214.7 |
|
$ |
231.0 |
|
(7 |
)% |
|
$ |
275.7 |
|
$ |
288.7 |
|
(5 |
)% |
Gross profit |
$ |
38.2 |
|
$ |
32.9 |
|
16 |
% |
|
$ |
25.2 |
|
$ |
20.7 |
|
22 |
% |
Gross margin |
|
17.8 |
% |
|
14.2 |
% |
|
|
|
9.1 |
% |
|
7.2 |
% |
|
||
EBITDA |
$ |
36.2 |
|
$ |
28.4 |
|
27 |
% |
|
$ |
17.4 |
|
$ |
11.5 |
|
52 |
% |
EBITDA margin |
|
16.9 |
% |
|
12.3 |
% |
|
|
|
6.3 |
% |
|
4.0 |
% |
|
Second quarter revenue decreased
Energy Services |
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
(In millions) |
||||||||||||||||
Revenue |
$ |
76.2 |
|
$ |
84.1 |
|
(9 |
)% |
|
$ |
89.0 |
|
$ |
93.5 |
|
(5 |
)% |
Gross profit |
$ |
20.3 |
|
$ |
23.3 |
|
(13 |
)% |
|
$ |
19.0 |
|
$ |
21.4 |
|
(11 |
)% |
Gross margin |
|
26.7 |
% |
|
27.7 |
% |
|
|
|
21.4 |
% |
|
23.0 |
% |
|
||
EBITDA |
$ |
19.4 |
|
$ |
21.8 |
|
(11 |
)% |
|
$ |
16.9 |
|
$ |
18.8 |
|
(10 |
)% |
EBITDA margin |
|
25.4 |
% |
|
25.9 |
% |
|
|
|
19.0 |
% |
|
20.1 |
% |
|
Second quarter revenue decreased year-over-year at Energy Services as market pricing for liquid asphalt continued to decrease across all markets. The decrease in pricing was slightly offset by strong demand in
CAPITAL ALLOCATION & LIQUIDITY |
As of June 30, 2024, Knife River had
During the first half of 2024, we invested approximately
2024 FINANCIAL GUIDANCE |
Knife River increased its financial guidance ranges for the full year 2024 to better reflect momentum in pricing strength, cost optimization and continued positive impact from EDGE initiatives. For the full year 2024, we anticipate price increases of high single digits for aggregates and ready-mix and low single digits for asphalt. We expect continued pricing strength to be partially offset by volume declines for the materials product lines. The guidance ranges are based on normal weather, economic and operating conditions.
|
Low |
High |
||
|
(In millions) |
|||
Revenue |
|
|
||
Revenue (Knife River Consolidated) |
$ |
2,800.0 |
$ |
3,000.0 |
|
|
|
||
Adjusted EBITDA |
|
|
||
Geographic Segments (including Corporate Services) |
$ |
390.0 |
$ |
425.0 |
Energy Services |
$ |
55.0 |
$ |
60.0 |
Knife River Consolidated |
$ |
445.0 |
$ |
485.0 |
SECOND QUARTER 2024 RESULTS CONFERENCE CALL |
Knife River will host a conference call at 10 a.m. EDT on August 6, 2024, to discuss second quarter results, 2024 guidance and conduct a question-and-answer session. The event will be webcast at https://events.q4inc.com/attendee/560145310.
To participate in the live call:
- Domestic: 1-800-549-8228
-
International: 1-289-819-1520
Conference ID: 44238
ABOUT KNIFE RIVER CORPORATION |
Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.
Knife River Corporation |
|||||||||
Consolidated Statements of Operations |
|||||||||
(Unaudited) |
|||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||
|
June 30, |
|
June 30, |
||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
(In millions, except per share amounts) |
||||||||
Revenue: |
|
|
|
|
|
||||
Construction materials |
$ |
435.1 |
$ |
431.8 |
|
$ |
639.2 |
$ |
624.7 |
Contracting services |
|
371.8 |
|
353.4 |
|
|
497.3 |
|
468.4 |
Total revenue |
|
806.9 |
|
785.2 |
|
|
1,136.5 |
|
1,093.1 |
Cost of revenue: |
|
|
|
|
|
||||
Construction materials |
|
310.3 |
|
316.2 |
|
|
520.1 |
|
510.3 |
Contracting services |
|
320.4 |
|
316.0 |
|
|
433.7 |
|
425.7 |
Total cost of revenue |
|
630.7 |
|
632.2 |
|
|
953.8 |
|
936.0 |
Gross profit |
|
176.2 |
|
153.0 |
|
|
182.7 |
|
157.1 |
Selling, general and administrative expenses |
|
59.5 |
|
59.5 |
|
|
119.7 |
|
108.1 |
Operating income |
|
116.7 |
|
93.5 |
|
|
63.0 |
|
49.0 |
Interest expense |
|
13.9 |
|
19.1 |
|
|
27.9 |
|
28.7 |
Other income |
|
1.3 |
|
2.5 |
|
|
5.1 |
|
3.3 |
Income before income taxes |
|
104.1 |
|
76.9 |
|
|
40.2 |
|
23.6 |
Income tax expense |
|
26.2 |
|
20.1 |
|
|
9.9 |
|
8.1 |
Net income |
$ |
77.9 |
$ |
56.8 |
|
$ |
30.3 |
$ |
15.5 |
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
||||
Basic |
$ |
1.38 |
$ |
1.00 |
|
$ |
.54 |
$ |
.27 |
Diluted |
$ |
1.37 |
$ |
1.00 |
|
$ |
.53 |
$ |
.27 |
Weighted average common shares outstanding: |
|
|
|
|
|
||||
Basic |
|
56.6 |
|
56.6 |
|
|
56.6 |
|
56.6 |
Diluted |
|
56.8 |
|
56.6 |
|
|
56.8 |
|
56.6 |
Knife River Corporation |
|||||||||||
Consolidated Balance Sheets |
|||||||||||
(Unaudited) |
|||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
December 31, 2023 |
||||||
Assets |
(In millions, except shares and per share amounts) |
||||||||||
Current assets: |
|
|
|
|
|
||||||
Cash, cash equivalents and restricted cash |
$ |
57.2 |
|
|
$ |
68.5 |
|
|
$ |
262.3 |
|
Receivables, net |
|
422.9 |
|
|
|
418.6 |
|
|
|
266.8 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
49.2 |
|
|
|
58.0 |
|
|
|
27.3 |
|
Inventories |
|
385.4 |
|
|
|
374.4 |
|
|
|
319.6 |
|
Prepayments and other current assets |
|
35.0 |
|
|
|
38.8 |
|
|
|
37.5 |
|
Total current assets |
|
949.7 |
|
|
|
958.3 |
|
|
|
913.5 |
|
Noncurrent assets: |
|
|
|
|
|
||||||
Property, plant and equipment |
|
2,672.3 |
|
|
|
2,533.4 |
|
|
|
2,579.7 |
|
Less accumulated depreciation, depletion and amortization |
|
1,316.9 |
|
|
|
1,221.9 |
|
|
|
1,264.7 |
|
Net property, plant and equipment |
|
1,355.4 |
|
|
|
1,311.5 |
|
|
|
1,315.0 |
|
Goodwill |
|
275.2 |
|
|
|
274.5 |
|
|
|
274.5 |
|
Other intangible assets, net |
|
10.1 |
|
|
|
12.1 |
|
|
|
10.8 |
|
Operating lease right-of-use assets |
|
47.8 |
|
|
|
45.9 |
|
|
|
44.7 |
|
Investments and other |
|
44.7 |
|
|
|
40.6 |
|
|
|
41.3 |
|
Total noncurrent assets |
|
1,733.2 |
|
|
|
1,684.6 |
|
|
|
1,686.3 |
|
Total assets |
$ |
2,682.9 |
|
|
$ |
2,642.9 |
|
|
$ |
2,599.8 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Long-term debt - current portion |
$ |
7.1 |
|
|
$ |
7.1 |
|
|
$ |
7.1 |
|
Accounts payable |
|
164.2 |
|
|
|
174.6 |
|
|
|
107.7 |
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
45.1 |
|
|
|
44.6 |
|
|
|
51.4 |
|
Taxes payable |
|
15.6 |
|
|
|
29.9 |
|
|
|
9.3 |
|
Accrued compensation |
|
29.2 |
|
|
|
26.0 |
|
|
|
48.1 |
|
Accrued interest |
|
7.2 |
|
|
|
7.9 |
|
|
|
7.2 |
|
Current operating lease liabilities |
|
13.6 |
|
|
|
14.1 |
|
|
|
12.9 |
|
Other accrued liabilities |
|
96.3 |
|
|
|
80.2 |
|
|
|
103.6 |
|
Total current liabilities |
|
378.3 |
|
|
|
384.4 |
|
|
|
347.3 |
|
Noncurrent liabilities: |
|
|
|
|
|
||||||
Long-term debt |
|
672.5 |
|
|
|
832.0 |
|
|
|
674.6 |
|
Deferred income taxes |
|
179.2 |
|
|
|
170.5 |
|
|
|
174.5 |
|
Noncurrent operating lease liabilities |
|
34.2 |
|
|
|
31.9 |
|
|
|
31.8 |
|
Other |
|
120.0 |
|
|
|
129.2 |
|
|
|
105.6 |
|
Total liabilities |
|
1,384.2 |
|
|
|
1,548.0 |
|
|
|
1,333.8 |
|
Commitments and contingencies |
|
|
|
|
|
||||||
Stockholders' equity: |
|
|
|
|
|
||||||
Common stock, 300,000,000 shares authorized, |
|
.6 |
|
|
|
.6 |
|
|
|
.6 |
|
Other paid-in capital |
|
616.7 |
|
|
|
611.6 |
|
|
|
614.5 |
|
Retained earnings |
|
696.2 |
|
|
|
498.5 |
|
|
|
665.8 |
|
Treasury stock held at cost - 431,136 shares |
|
(3.6 |
) |
|
|
(3.6 |
) |
|
|
(3.6 |
) |
Accumulated other comprehensive loss |
|
(11.2 |
) |
|
|
(12.2 |
) |
|
|
(11.3 |
) |
Total stockholders' equity |
|
1,298.7 |
|
|
|
1,094.9 |
|
|
|
1,266.0 |
|
Total liabilities and stockholders' equity |
$ |
2,682.9 |
|
|
$ |
2,642.9 |
|
|
$ |
2,599.8 |
|
Knife River Corporation |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
|
Six Months Ended |
||||||
|
June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In millions) |
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
30.3 |
|
|
$ |
15.5 |
|
Adjustments to reconcile net income to net cash used in operating activities |
|
70.2 |
|
|
|
55.1 |
|
Changes in current assets and liabilities, net of acquisitions: |
|
|
|
||||
Receivables |
|
(178.1 |
) |
|
|
(236.4 |
) |
Due from related-party |
|
— |
|
|
|
16.1 |
|
Inventories |
|
(65.4 |
) |
|
|
(51.1 |
) |
Other current assets |
|
2.5 |
|
|
|
(20.9 |
) |
Accounts payable |
|
57.9 |
|
|
|
102.6 |
|
Due to related-party |
|
— |
|
|
|
(7.3 |
) |
Other current liabilities |
|
(12.8 |
) |
|
|
25.6 |
|
Pension and postretirement benefit plan contributions |
|
(.3 |
) |
|
|
(.3 |
) |
Other noncurrent changes |
|
6.0 |
|
|
|
30.7 |
|
Net cash used in operating activities |
|
(89.7 |
) |
|
|
(70.4 |
) |
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(103.6 |
) |
|
|
(66.6 |
) |
Acquisitions, net of cash acquired |
|
(10.2 |
) |
|
|
— |
|
Net proceeds from sale or disposition of property and other |
|
6.8 |
|
|
|
4.1 |
|
Investments |
|
(3.2 |
) |
|
|
(1.6 |
) |
Net cash used in investing activities |
|
(110.2 |
) |
|
|
(64.1 |
) |
Financing activities: |
|
|
|
||||
Issuance of long-term related-party notes, net |
|
— |
|
|
|
205.3 |
|
Issuance of long-term debt |
|
— |
|
|
|
855.0 |
|
Repayment of long-term debt |
|
(3.5 |
) |
|
|
(.1 |
) |
Debt issuance costs |
|
— |
|
|
|
(16.7 |
) |
Tax withholding on stock-based compensation |
|
(1.7 |
) |
|
|
— |
|
Net transfers to Centennial Energy Holdings Inc. |
|
— |
|
|
|
(850.6 |
) |
Net cash provided by (used in) financing activities |
|
(5.2 |
) |
|
|
192.9 |
|
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(205.1 |
) |
|
|
58.4 |
|
Cash, cash equivalents and restricted cash -- beginning of year |
|
262.3 |
|
|
|
10.1 |
|
Cash, cash equivalents and restricted cash -- end of period |
$ |
57.2 |
|
|
$ |
68.5 |
|
Segment Financial Data and Highlights (Unaudited) |
||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
2023 |
||||||||||||||||
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
Dollars |
Margin |
||||||||||||
|
(Dollars in millions) |
|||||||||||||||||||||
Revenues by segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
131.8 |
|
|
|
$ |
125.1 |
|
|
|
$ |
210.2 |
|
|
$ |
190.7 |
|
|
||||
Northwest |
|
201.2 |
|
|
|
|
179.0 |
|
|
|
|
321.5 |
|
|
|
294.9 |
|
|
||||
Mountain |
|
194.0 |
|
|
|
|
175.8 |
|
|
|
|
253.8 |
|
|
|
236.4 |
|
|
||||
Central |
|
214.7 |
|
|
|
|
231.0 |
|
|
|
|
275.7 |
|
|
|
288.7 |
|
|
||||
Energy Services |
|
76.2 |
|
|
|
|
84.1 |
|
|
|
|
89.0 |
|
|
|
93.5 |
|
|
||||
Total segment revenues |
|
817.9 |
|
|
|
|
795.0 |
|
|
|
|
1,150.2 |
|
|
|
1,104.2 |
|
|
||||
Corporate Services and Eliminations |
|
(11.0 |
) |
|
|
|
(9.8 |
) |
|
|
|
(13.7 |
) |
|
|
(11.1 |
) |
|
||||
Consolidated revenues |
$ |
806.9 |
|
|
|
$ |
785.2 |
|
|
|
$ |
1,136.5 |
|
|
$ |
1,093.1 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit by segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
22.0 |
|
16.7 |
% |
|
$ |
22.1 |
|
17.7 |
% |
|
$ |
25.8 |
|
12.3 |
% |
$ |
26.5 |
|
13.9 |
% |
Northwest |
|
51.5 |
|
25.6 |
% |
|
|
41.2 |
|
23.0 |
% |
|
|
71.7 |
|
22.3 |
% |
|
57.9 |
|
19.6 |
% |
Mountain |
|
43.8 |
|
22.6 |
% |
|
|
32.1 |
|
18.3 |
% |
|
|
40.1 |
|
15.8 |
% |
|
29.1 |
|
12.3 |
% |
Central |
|
38.2 |
|
17.8 |
% |
|
|
32.9 |
|
14.2 |
% |
|
|
25.2 |
|
9.1 |
% |
|
20.7 |
|
7.2 |
% |
Energy Services |
|
20.3 |
|
26.7 |
% |
|
|
23.3 |
|
27.7 |
% |
|
|
19.0 |
|
21.4 |
% |
|
21.4 |
|
23.0 |
% |
Total segment gross profit |
|
175.8 |
|
21.5 |
% |
|
|
151.6 |
|
19.1 |
% |
|
|
181.8 |
|
15.8 |
% |
|
155.6 |
|
14.1 |
% |
Corporate Services and Eliminations |
|
.4 |
|
(3.8 |
)% |
|
|
1.4 |
|
(13.6 |
)% |
|
|
.9 |
|
(6.4 |
)% |
|
1.5 |
|
(13.1 |
)% |
Consolidated gross profit |
$ |
176.2 |
|
21.8 |
% |
|
$ |
153.0 |
|
19.5 |
% |
|
$ |
182.7 |
|
16.1 |
% |
$ |
157.1 |
|
14.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) by segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
11.7 |
|
8.8 |
% |
|
$ |
12.1 |
|
9.7 |
% |
|
$ |
5.1 |
|
2.4 |
% |
$ |
7.1 |
|
3.7 |
% |
Northwest |
|
39.7 |
|
19.7 |
% |
|
|
29.2 |
|
16.3 |
% |
|
|
50.0 |
|
15.5 |
% |
34.3 |
|
11.6 |
% |
|
Mountain |
|
36.5 |
|
18.8 |
% |
|
|
24.1 |
|
13.7 |
% |
|
|
24.1 |
|
9.5 |
% |
14.3 |
|
6.1 |
% |
|
Central |
|
26.9 |
|
12.5 |
% |
|
|
20.0 |
|
8.6 |
% |
|
|
(.5 |
) |
(.2 |
)% |
(5.0 |
) |
(1.7 |
)% |
|
Energy Services |
|
18.1 |
|
23.8 |
% |
|
|
20.5 |
|
24.4 |
% |
|
|
14.4 |
|
16.2 |
% |
|
16.3 |
|
17.5 |
% |
Total segment net income |
|
132.9 |
|
16.2 |
% |
|
|
105.9 |
|
13.3 |
% |
|
|
93.1 |
|
8.1 |
% |
67.0 |
|
6.1 |
% |
|
Corporate Services and Eliminations* |
|
(55.0 |
) |
N.M. |
|
|
(49.1 |
) |
N.M. |
|
|
(62.8 |
) |
N.M. |
|
(51.5 |
) |
N.M. |
||||
Consolidated net income |
$ |
77.9 |
|
9.7 |
% |
|
$ |
56.8 |
|
7.2 |
% |
|
$ |
30.3 |
|
2.7 |
% |
$ |
15.5 |
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA* by segment: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pacific |
$ |
17.8 |
|
13.5 |
% |
|
$ |
17.4 |
|
14.0 |
% |
|
$ |
17.0 |
|
8.1 |
% |
$ |
17.6 |
|
9.2 |
% |
Northwest |
|
50.7 |
|
25.2 |
% |
|
|
38.9 |
|
21.7 |
% |
|
|
70.9 |
|
22.1 |
% |
|
52.9 |
|
17.9 |
% |
Mountain |
|
43.1 |
|
22.2 |
% |
|
|
30.3 |
|
17.2 |
% |
|
|
37.0 |
|
14.6 |
% |
|
26.5 |
|
11.2 |
% |
Central |
|
36.2 |
|
16.9 |
% |
|
|
28.4 |
|
12.3 |
% |
|
|
17.4 |
|
6.3 |
% |
|
11.5 |
|
4.0 |
% |
Energy Services |
|
19.4 |
|
25.4 |
% |
|
|
21.8 |
|
25.9 |
% |
|
|
16.9 |
|
19.0 |
% |
|
18.8 |
|
20.1 |
% |
Total segment EBITDA* |
|
167.2 |
|
20.4 |
% |
|
|
136.8 |
|
17.2 |
% |
|
|
159.2 |
|
13.8 |
% |
|
127.3 |
|
11.5 |
% |
Corporate Services and Eliminations |
|
(15.8 |
) |
143.6 |
% |
|
|
(11.7 |
) |
119.2 |
% |
|
|
(28.4 |
) |
208.3 |
% |
|
(16.3 |
) |
146.7 |
% |
Consolidated EBITDA* |
$ |
151.4 |
|
18.8 |
% |
|
$ |
125.1 |
|
15.9 |
% |
|
$ |
130.8 |
|
11.5 |
% |
$ |
111.0 |
|
10.2 |
% |
* N.M. - not meaningful |
||||||||||||||||||||||
* EBITDA, segment EBITDA, EBITDA margin and segment EBITDA margin are non-GAAP financial measures. For more information and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." |
The following table summarizes backlog for the company.
|
June 30, 2024 |
|
June 30, 2023 |
||
|
(In millions) |
||||
Pacific |
$ |
101.0 |
|
$ |
78.3 |
Northwest |
|
219.8 |
|
|
257.3 |
Mountain |
|
365.5 |
|
|
377.3 |
Central |
|
302.2 |
|
|
328.0 |
|
$ |
988.5 |
|
$ |
1,040.9 |
Margins on backlog at June 30, 2024, are expected to be higher than the margins on backlog at June 30, 2023. Approximately
|
Three Months Ended |
|
Six Months Ended |
||||||
|
June 30, |
|
June 30, |
||||||
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
Sales (thousands): |
|
|
|
|
|
||||
Aggregates (tons) |
|
9,408 |
|
9,181 |
|
|
13,663 |
|
14,049 |
Ready-mix concrete (cubic yards) |
|
975 |
|
1,113 |
|
|
1,505 |
|
1,674 |
Asphalt (tons) |
|
1,813 |
|
1,913 |
|
|
2,034 |
|
2,092 |
|
|
|
|
|
|
||||
Average selling price:* |
|
|
|
|
|
||||
Aggregates (per ton) |
$ |
16.84 |
$ |
15.95 |
|
$ |
17.76 |
$ |
16.37 |
Ready-mix concrete (per cubic yard) |
$ |
184.12 |
$ |
166.11 |
|
$ |
185.63 |
$ |
168.30 |
Asphalt (per ton) |
$ |
65.82 |
$ |
65.32 |
|
$ |
66.76 |
$ |
66.24 |
* The average selling price includes freight and delivery and other revenues. |
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
2023 |
||||||||||||||||
|
Dollars |
Margin |
|
Dollars |
Margin |
|
Dollars |
Margin |
Dollars |
Margin |
||||||||||||
|
(Dollars in millions) |
|||||||||||||||||||||
Revenues by product line: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregates |
$ |
158.4 |
|
|
|
$ |
146.4 |
|
|
|
$ |
242.7 |
|
|
$ |
229.9 |
|
|
||||
Ready-mix concrete |
|
179.5 |
|
|
|
|
184.9 |
|
|
|
|
279.4 |
|
|
|
281.7 |
|
|
||||
Asphalt |
|
119.3 |
|
|
|
|
125.0 |
|
|
|
|
135.7 |
|
|
|
138.5 |
|
|
||||
Liquid asphalt |
|
65.3 |
|
|
|
|
72.9 |
|
|
|
|
76.3 |
|
|
|
81.2 |
|
|
||||
Other* |
|
77.7 |
|
|
|
|
70.3 |
|
|
|
|
116.7 |
|
|
|
100.6 |
|
|
||||
Contracting services |
|
371.8 |
|
|
|
|
353.4 |
|
|
|
|
497.3 |
|
|
|
468.4 |
|
|
||||
Internal sales |
|
(165.1 |
) |
|
|
|
(167.7 |
) |
|
|
|
(211.6 |
) |
|
|
(207.2 |
) |
|
||||
Total revenues |
$ |
806.9 |
|
|
|
$ |
785.2 |
|
|
|
$ |
1,136.5 |
|
|
$ |
1,093.1 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit by product line: |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aggregates |
$ |
39.6 |
|
25.0 |
% |
|
$ |
36.4 |
|
24.9 |
% |
|
$ |
44.4 |
|
18.3 |
% |
$ |
38.8 |
|
16.9 |
% |
Ready-mix concrete |
|
29.8 |
|
16.6 |
% |
|
|
28.1 |
|
15.2 |
% |
|
|
38.5 |
|
13.8 |
% |
|
36.8 |
|
13.1 |
% |
Asphalt |
|
17.3 |
|
14.5 |
% |
|
|
16.4 |
|
13.1 |
% |
|
|
11.7 |
|
8.6 |
% |
|
10.3 |
|
7.5 |
% |
Liquid asphalt |
|
15.8 |
|
24.2 |
% |
|
|
19.2 |
|
26.3 |
% |
|
|
14.8 |
|
19.5 |
% |
|
18.1 |
|
22.3 |
% |
Other* |
|
22.3 |
|
28.7 |
% |
|
|
15.5 |
|
22.0 |
% |
|
|
9.7 |
|
8.3 |
% |
|
10.4 |
|
10.2 |
% |
Contracting services |
|
51.4 |
|
13.8 |
% |
|
|
37.4 |
|
10.6 |
% |
|
|
63.6 |
|
12.8 |
% |
|
42.7 |
|
9.1 |
% |
Total gross profit |
$ |
176.2 |
|
21.8 |
% |
|
$ |
153.0 |
|
19.5 |
% |
|
$ |
182.7 |
|
16.1 |
% |
$ |
157.1 |
|
14.4 |
% |
* Other includes cement, merchandise, fabric and spreading, and other products and services that individually are not considered to be a core line of business. |
NON-GAAP FINANCIAL MEASURES
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, including those measures by segment, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric.
EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding stock-based compensation and unrealized gains and losses on benefit plan investments as they are considered non-cash and not part of our core operations. We also exclude the one-time, non-recurring costs associated with the separation of Knife River from MDU Resources as those are not expected to continue. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA and EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations.
EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and one-time separation costs, to EBITDA. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA Margin, net debt and net leverage measures having the same or similar names.
The following information reconciles segment and consolidated net income to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations.
Three Months Ended June 30, 2024 |
Pacific |
Northwest |
Mountain |
Central |
Energy Services |
Corporate Services and Eliminations |
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
11.7 |
|
$ |
39.7 |
|
$ |
36.5 |
|
$ |
26.9 |
|
$ |
18.1 |
|
$ |
(55.0 |
) |
$ |
77.9 |
|
Depreciation, depletion and amortization |
|
6.1 |
|
|
11.0 |
|
|
6.6 |
|
|
9.3 |
|
|
1.3 |
|
|
.2 |
|
|
34.5 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12.8 |
|
|
12.8 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
26.2 |
|
|
26.2 |
|
EBITDA |
$ |
17.8 |
|
$ |
50.7 |
|
$ |
43.1 |
|
$ |
36.2 |
|
$ |
19.4 |
|
$ |
(15.8 |
) |
$ |
151.4 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(.4 |
) |
$ |
(.4 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
1.8 |
|
|
1.8 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
1.5 |
|
|
1.5 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(12.9 |
) |
$ |
154.3 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
131.8 |
|
$ |
201.2 |
|
$ |
194.0 |
|
$ |
214.7 |
|
$ |
76.2 |
|
$ |
(11.0 |
) |
$ |
806.9 |
|
Net Income Margin |
|
8.8 |
% |
|
19.7 |
% |
|
18.8 |
% |
|
12.5 |
% |
|
23.8 |
% |
N.M. |
|
9.7 |
% |
||
EBITDA Margin |
|
13.5 |
% |
|
25.2 |
% |
|
22.2 |
% |
|
16.9 |
% |
|
25.4 |
% |
N.M. |
|
18.8 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
19.1 |
% |
||||||||||||
* N.M. - not meaningful |
Three Months Ended June 30, 2023 |
Pacific |
Northwest |
Mountain |
Central |
Energy Services |
Corporate Services and Eliminations |
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
12.1 |
|
$ |
29.2 |
|
$ |
24.1 |
|
$ |
20.0 |
|
$ |
20.5 |
|
$ |
(49.1 |
) |
$ |
56.8 |
|
Depreciation, depletion and amortization |
|
5.3 |
|
|
9.7 |
|
|
6.2 |
|
|
8.4 |
|
|
1.3 |
|
|
.2 |
|
|
31.1 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17.1 |
|
|
17.1 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20.1 |
|
|
20.1 |
|
EBITDA |
$ |
17.4 |
|
$ |
38.9 |
|
$ |
30.3 |
|
$ |
28.4 |
|
$ |
21.8 |
|
$ |
(11.7 |
) |
$ |
125.1 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(.4 |
) |
$ |
(.4 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
(.1 |
) |
|
(.1 |
) |
||||||||||
One-time separation costs |
|
|
|
|
|
|
1.7 |
|
|
1.7 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(10.5 |
) |
$ |
126.3 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
125.1 |
|
$ |
179.0 |
|
$ |
175.8 |
|
$ |
231.0 |
|
$ |
84.1 |
|
$ |
(9.8 |
) |
$ |
785.2 |
|
Net Income Margin |
|
9.7 |
% |
|
16.3 |
% |
|
13.7 |
% |
|
8.6 |
% |
|
24.4 |
% |
N.M. |
|
7.2 |
% |
||
EBITDA Margin |
|
14.0 |
% |
|
21.7 |
% |
|
17.2 |
% |
|
12.3 |
% |
|
25.9 |
% |
N.M. |
|
15.9 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
16.1 |
% |
||||||||||||
* N.M. - not meaningful |
Six Months Ended June 30, 2024 |
Pacific |
Northwest |
Mountain |
Central |
Energy Services |
Corporate Services and Eliminations |
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
5.1 |
|
$ |
50.0 |
|
$ |
24.1 |
|
$ |
(.5 |
) |
$ |
14.4 |
|
$ |
(62.8 |
) |
$ |
30.3 |
|
Depreciation, depletion and amortization |
|
11.9 |
|
|
20.9 |
|
|
12.9 |
|
|
17.9 |
|
|
2.5 |
|
|
.6 |
|
|
66.7 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
23.9 |
|
|
23.9 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9.9 |
|
|
9.9 |
|
EBITDA |
$ |
17.0 |
|
$ |
70.9 |
|
$ |
37.0 |
|
$ |
17.4 |
|
$ |
16.9 |
|
$ |
(28.4 |
) |
$ |
130.8 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(1.6 |
) |
$ |
(1.6 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
3.6 |
|
|
3.6 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
3.8 |
|
|
3.8 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(22.6 |
) |
$ |
136.6 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
210.2 |
|
$ |
321.5 |
|
$ |
253.8 |
|
$ |
275.7 |
|
$ |
89.0 |
|
$ |
(13.7 |
) |
$ |
1,136.5 |
|
Net Income Margin |
|
2.4 |
% |
|
15.5 |
% |
|
9.5 |
% |
|
(.2 |
)% |
|
16.2 |
% |
N.M. |
|
2.7 |
% |
||
EBITDA Margin |
|
8.1 |
% |
|
22.1 |
% |
|
14.6 |
% |
|
6.3 |
% |
|
19.0 |
% |
N.M. |
|
11.5 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
12.0 |
% |
||||||||||||
* N.M. - not meaningful |
Six Months Ended June 30, 2023 |
Pacific |
Northwest |
Mountain |
Central |
Energy Services |
Corporate Services and Eliminations |
Consolidated |
||||||||||||||
|
(In millions) |
||||||||||||||||||||
Net income (loss) |
$ |
7.1 |
|
$ |
34.3 |
|
$ |
14.3 |
|
$ |
(5.0 |
) |
$ |
16.3 |
|
$ |
(51.5 |
) |
$ |
15.5 |
|
Depreciation, depletion and amortization |
|
10.5 |
|
|
18.6 |
|
|
12.1 |
|
|
16.5 |
|
|
2.5 |
|
|
.5 |
|
|
60.7 |
|
Interest expense, net |
|
— |
|
|
— |
|
|
.1 |
|
|
— |
|
|
— |
|
|
26.6 |
|
|
26.7 |
|
Income taxes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
8.1 |
|
|
8.1 |
|
EBITDA |
$ |
17.6 |
|
$ |
52.9 |
|
$ |
26.5 |
|
$ |
11.5 |
|
$ |
18.8 |
|
$ |
(16.3 |
) |
$ |
111.0 |
|
Unrealized (gains) losses on benefit plan investments |
|
|
|
|
|
$ |
(1.7 |
) |
$ |
(1.7 |
) |
||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
.8 |
|
|
.8 |
|
||||||||||
One-time separation costs |
|
|
|
|
|
|
2.4 |
|
|
2.4 |
|
||||||||||
Adjusted EBITDA |
|
|
|
|
|
$ |
(14.8 |
) |
$ |
112.5 |
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Revenue |
$ |
190.7 |
|
$ |
294.9 |
|
$ |
236.4 |
|
$ |
288.7 |
|
$ |
93.5 |
|
$ |
(11.1 |
) |
$ |
1,093.1 |
|
Net Income Margin |
|
3.7 |
% |
|
11.6 |
% |
|
6.1 |
% |
|
(1.7 |
)% |
|
17.5 |
% |
N.M. |
|
1.4 |
% |
||
EBITDA Margin |
|
9.2 |
% |
|
17.9 |
% |
|
11.2 |
% |
|
4.0 |
% |
|
20.1 |
% |
N.M. |
|
10.2 |
% |
||
Adjusted EBITDA Margin |
|
|
|
|
|
N.M. |
|
10.3 |
% |
||||||||||||
* N.M. - not meaningful |
The following tables provide the reconciliation to trailing-twelve-month EBITDA and Adjusted EBITDA as of June 30, 2024, as well as the net leverage calculation of net debt to trailing-twelve-month Adjusted EBITDA.
|
Twelve Months
June 30, 2024 |
|
Six Months
|
Twelve Months
|
Six Months
|
||||||||
|
(In millions) |
||||||||||||
Net income |
$ |
197.7 |
|
|
$ |
30.3 |
|
$ |
182.9 |
|
$ |
15.5 |
|
Depreciation, depletion and amortization |
|
129.8 |
|
|
|
66.7 |
|
|
123.8 |
|
|
60.7 |
|
Interest expense, net |
|
50.1 |
|
|
|
23.9 |
|
|
52.9 |
|
|
26.7 |
|
Income taxes |
|
64.2 |
|
|
|
9.9 |
|
|
62.4 |
|
|
8.1 |
|
EBITDA |
$ |
441.8 |
|
|
$ |
130.8 |
|
$ |
422.0 |
|
$ |
111.0 |
|
Unrealized (gains) losses on benefit plan investments |
|
(2.6 |
) |
|
|
(1.6 |
) |
|
(2.7 |
) |
|
(1.7 |
) |
Stock-based compensation expense |
|
5.9 |
|
|
|
3.6 |
|
|
3.1 |
|
|
.8 |
|
One-time separation costs |
|
11.4 |
|
|
|
3.8 |
|
|
10.0 |
|
|
2.4 |
|
Adjusted EBITDA |
$ |
456.5 |
|
|
$ |
136.6 |
|
$ |
432.4 |
|
$ |
112.5 |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
2,873.7 |
|
|
$ |
1,136.5 |
|
$ |
2,830.3 |
|
$ |
1,093.1 |
|
Net Income Margin |
|
6.9 |
% |
|
|
2.7 |
% |
|
6.5 |
% |
|
1.4 |
% |
EBITDA Margin |
|
15.4 |
% |
|
|
11.5 |
% |
|
14.9 |
% |
|
10.2 |
% |
Adjusted EBITDA Margin |
|
15.9 |
% |
|
|
12.0 |
% |
|
15.3 |
% |
|
10.3 |
% |
|
Twelve Months
June 30, 2023 |
|
Six Months
|
Twelve Months
|
Six Months
|
||||||||
|
(In millions) |
||||||||||||
Net income (loss) |
$ |
133.2 |
|
|
$ |
15.5 |
|
$ |
116.2 |
|
$ |
(1.5 |
) |
Depreciation, depletion and amortization |
|
120.4 |
|
|
|
60.7 |
|
|
117.8 |
|
|
58.1 |
|
Interest expense, net |
|
44.1 |
|
|
|
26.7 |
|
|
30.1 |
|
|
12.7 |
|
Income taxes |
|
50.9 |
|
|
|
8.1 |
|
|
42.6 |
|
|
(.2 |
) |
EBITDA |
$ |
348.6 |
|
|
$ |
111.0 |
|
$ |
306.7 |
|
$ |
69.1 |
|
Unrealized (gains) losses on benefit plan investments |
|
(1.7 |
) |
|
|
(1.7 |
) |
|
4.0 |
|
|
4.0 |
|
Stock-based compensation expense |
|
2.1 |
|
|
|
.8 |
|
|
2.7 |
|
|
1.4 |
|
One-time separation costs |
|
2.4 |
|
|
|
2.4 |
|
|
— |
|
|
— |
|
Adjusted EBITDA |
$ |
351.4 |
|
|
$ |
112.5 |
|
$ |
313.4 |
|
$ |
74.5 |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
2,606.0 |
|
|
$ |
1,093.1 |
|
$ |
2,534.7 |
|
$ |
1,021.8 |
|
Net Income Margin |
|
5.1 |
% |
|
|
1.4 |
% |
|
4.6 |
% |
|
(.1 |
)% |
EBITDA Margin |
|
13.4 |
% |
|
|
10.2 |
% |
|
12.1 |
% |
|
6.8 |
% |
Adjusted EBITDA Margin |
|
13.5 |
% |
|
|
10.3 |
% |
|
12.4 |
% |
|
7.3 |
% |
The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.
|
Twelve Months
June 30, 2024 |
|
|
|
(In millions) |
||
Long-term debt |
$ |
672.5 |
|
Long-term debt - current portion |
|
7.1 |
|
Total debt |
|
679.6 |
|
Add: Unamortized debt issuance costs |
|
13.9 |
|
Total debt, gross |
|
693.5 |
|
Less: Cash and cash equivalents, excluding restricted cash |
|
15.5 |
|
Total debt, net |
$ |
678.0 |
|
Trailing twelve months ended June 30, 2024, Adjusted EBITDA |
$ |
456.5 |
|
|
|
|
|
Net leverage |
|
1.5 |
x |
The following table provides a reconciliation of consolidated GAAP net income to EBITDA and Adjusted EBITDA for forecasted results.
|
2024 |
|||||
|
Low |
High |
||||
|
(In millions) |
|||||
Net income |
$ |
193.0 |
|
$ |
223.0 |
|
Adjustments: |
|
|
||||
Interest expense, net |
|
45.0 |
|
|
45.0 |
|
Income taxes |
|
65.0 |
|
|
75.0 |
|
Depreciation, depletion and amortization |
|
132.5 |
|
|
132.5 |
|
EBITDA |
$ |
435.5 |
|
$ |
475.5 |
|
Unrealized (gains) losses on benefit plan investments |
|
(1.6 |
) |
|
(1.6 |
) |
Stock-based compensation expense |
|
7.2 |
|
|
7.2 |
|
One-time separation costs |
|
3.9 |
|
|
3.9 |
|
Adjusted EBITDA |
$ |
445.0 |
|
$ |
485.0 |
|
Knife River's long-term goal for Adjusted EBITDA is also a non-GAAP financial measure that excludes or otherwise has been adjusted for non-GAAP adjustment items from Knife River's GAAP financial statements. When the company provides its forward-looking long-term goal for Adjusted EBITDA, it does not provide a reconciliation of this non-GAAP financial measure as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, Knife River is unable to provide a reconciliation of this measure without unreasonable efforts.
FORWARD-LOOKING STATEMENTS
The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, there is no assurance the company’s projections or estimates for growth, shareholder value creation, financial guidance, expected backlog margin or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's 2023 Form 10-K and subsequent filings with the Securities and Exchange Commission.
Changes in such assumptions and factors could cause actual future results to differ materially from growth and financial guidance. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806846836/en/
Media Contact: Tony Spilde, Senior Director of Communications, 541-693-5949
IR Contact: Zane Karimi, Director of Investor Relations, 503-944-3508
Source: Knife River Corporation
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